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Statistics show that the number of new entrepreneurs is dwindling despite this period being described as the golden age of entrepreneurship. In the U.S., the startup rate was  reduced by approximately half between 1978 and 2011. These facts are different from the perception that many people have concerning young people launching tech firms and their  impact on the country’s economy.


This decline is attributed to several reasons. Some of them include:


Financial incapacity:

Startups are less appealing to young people because they have less money to risk. Young people also find it difficult to access capital because most investors prefer mature businesses than startups.


High student debt levels:

Most  college graduates are burdened by student loan debt, making launching a new businesses not a viable option.


The Real Reasons Behind the Decline of New Entrepreneurs



Company consolidation:

Many companies have been consolidating to create large corporations with a  wider market base and larger capital. This makes the market very competitive for startups thus deterring young people’s efforts to launch new companies. The larger these established businesses become, the fewer the number of startups.


Fear of failure:

Many young people don’t consider starting  a business simply because of their fear of failing. The possible risks involved scares them, but the fact remains that all businesses have risks; something which should be embraced and dealt with.


The Real Reasons Behind the Decline of New Entrepreneurs

startups find it difficult to get their hands on modern technologies



Despite this being a tech savvy generation, startups find it difficult to get their hands on modern technologies. Businesses of all kinds and sizes of  have adopted new technologies to compete in the market,  making it more challenging for new entrepreneurs to get into the industry, especially young people.


Difficulty to get people with the right expertise:

Many young people do not have sufficient funds or networks to find people with the right knowledge and experience to help them when starting a new business. This makes it difficult for young people to overcome the challenges associated with new businesses at the startup stage.


The decline in the number of new entrepreneurs means that there will be fewer job opportunities in the near future, ergo a decline in the economy. This requires prompt measures to be taken in order to pave the way for fresh, young businesses to flourish and spur young people’s spirit to embark on new enterprises.

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